UNION BANK OF CALIFORNIA
Commercial Portfolio Administration
000 Xxxxx Xxxx Xxxxxx
Xxxxxx, Xxxxxxxxxx 00000
October 4, 1996
Xxxxxxx Xxxxxx, President
Smartflex Systems, Inc.
00000 Xxxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxx 00000
Re: Loan Agreement ("Agreement")
Dated: September 29, 1995
Dear Xx. Xxxxxx:
In reference to the Agreement between Union Bank of California, N.A.
("Bank") and Smartflex Systems, Inc. ("Borrower") dated September 29, 1995, the
Bank and Borrower desire to amend the Agreement. This amendment shall be called
the Third Amendment to the Agreement. Initially capitalized terms used herein
which are not otherwise defined shall have the meaning assigned thereto in the
Agreement.
Amendments to the Agreement:
(a) Section 1.1 The Revolving Loan the third sentence in this section shall
be amended to: "All borrowings of the Revolving Loan must be made before
September 30, 1998 at which time all unpaid principal and interest of the
Revolving Loan shall be due and payable".
(b) Section 1.1.1 The Letter of Credit Sublimit the date in the last
sentence shall be amended to: "September 30, 1998".
(c) Section 1.5 Unused Commitment Fee the date on the third line shall be
amended to: "September 30, 1998".
(d) Section 1.1.2 The Term Loan the first sentence in this section shall be
amended to: "Bank will loan to Borrower the sum of Two Million Two Hundred
Thousand Dollars ($2,200,000) (the "Term Loan") at Borrower's request, in one or
more disbursements of not less than Five Hundred Thousand Dollars ($500,000) on
or before March 31, 1997 in accordance with the terms of the Term Note".
This Third Amendment shall become effective on October 4, 1996. The
acknowledgment copy of this Third Amendment executed by the Borrower must
received by Bank before October 30, 1996.
Except as specifically amended hereby, the Agreement shall remain in full
force and effect and is hereby ratified and confirmed. This Third Amendment
shall not be a waiver of any existing default or breach of a condition to
covenant unless specified herein.
UNION BANK OF CALIFORNIA, N. A. Xxxxxx and Accepted to this 11th day of
October, 1996.
By: /s/ Xxxx Xxxxxxx Smartflex Systems, Inc.,
Title: Vice President a Delaware Corporation
By: /s/ Xxxxxx Xxxxxx By: /s/ Xxxxxxx X. Xxxxxx
Title: Vice President Title: President
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